By MICHAEL CRIMMINS
Glasgow News 1
Glasgow’s Joann Fabrics and Crafts store is one of 500 listed to close.
The Glasgow store is located in the Barren River Plaza beside Ruler Foods.
Barren River Plaza co-owner Larry Glass said things are “up in the air” right now as to what will take Joann’s space in the shopping center. He said he has had a Letter of Intent from Harbor Freight for some time.
“I don’t know what’s going to happen at this time,” Glass said. “It’s kind of up in the air right now, but we have options. It all depends on the liquidation sale and who buys Joann.”
This is the second time in 12 months that the 82-year-old retailer has filed for bankruptcy, having filed back in March 2024 — which resulted in privatization thereby keeping all its stores open.
Joann blamed inventory issues and “unexpected ramp-down[s] and, in some cases the entire cessation of production” on items that are sought by shoppers. These issues put Joann in an “untenable position” with its $615 million debt.
In a release, the company stated it was seeking the sale of “substantially all of its assets” and lists Gordon Brothers, which recently bought much of Big Lots, as the first bidder, though they state the deal is subject to a higher offer.
“Since becoming a private company in April, the board and management team have continued to execute on top and bottom-line initiatives to manage costs and drive value,” said Michael Prendergast, Interim Chief Executive Officer of Joann. “However, the last several years have presented significant and lasting challenges in the retail environment, which, coupled with our current financial position and constrained inventory levels, forced us to take this step.”
According to the release, some of Joann’s stores and website will continue to operate while the company navigates the bankruptcy process. Employees will continue to get paid as well.
In a Feb. 12 press release, the company stated the 500 closures are necessary “to maximize the value of the business.” Three hundred stores will remain open nationwide.
“This was a very difficult decision to make, given the major impact we know it will have on our team members, our customers and all of the communities we serve,” the retailer stated in the release. “A careful analysis of store performance and future strategic fit for the company determined which stores should remain operating as usual at this time. Right-sizing our store footprint is a critical part of our efforts to ensure the best path forward for Joann.”
